The Mashantucket Pequots and Mohegan Indians are taking no chances as they seek new business ventures to take the place of their immensely profitable casinos just in case their cash cows falter.
The owners of Foxwoods Resort Casino and Mohegan Sun have had limited success with business ventures other than gambling. But they're looking for investment opportunities that will make money and help tribes in other regions.
The Mohegans, for example, have a development contract with Wisconsin's Menominee Tribe, which is seeking to build a casino at a greyhound track in Kenosha, Wis.
The Mashantuckets are looking to develop and manage a "racino" -- gambling at a racing track -- in Bangor, Maine, with the Passamaquoddy and Penobscot tribes.
"Since the birth of tribal government gaming, part of the tribes' diversification has been reaching out to other tribes both in terms of management agreements and financing," said Mark Van Norman, executive director of the National Indian Gaming Association.
Andrew J. Lee, executive director of the Harvard Project on American Indian Economic Development, said most tribes are considering branching out.
"I think diversification is the name of the game," Lee said. "It's very much the case that single-industry nations, whether they're Indian or non-Indian, they have trouble."
The Mohegans are considering gambling ventures throughout the country, meeting recently with the Torres Martinez Desert Cahuilla Indians in California.
"To me, we have to be widely dispersed in different geographical markets," said Mohegan Vice Chairman Peter F. Schultz. "The further away the better."
Since opening their casino in 1996 and developing it into a $1 billion annual business, the Mohegans have ventured into aquaculture and telecommunications. In the aquaculture program, the Mohegans leased town and state shellfish beds between Pawcatuck and Niantic to raise oysters, clams and scallops.
The tribe, which made an initial $7 million investment and has spent more than $4 million since 2000, is trying to break even in three years.
The Mohegans also partnered with Telaid Industries of Niantic to form the Mohegan Information Technology Group. The firm, which upgrades computer and phone systems, is "well on its way" with contracts throughout the country, Schultz said.
